Saudi Savola Q2 net down 2.3pc

Riyadh, July 18, 2010

Saudi-based Savola Group posted a 2.3 per cent drop in second-quarter net profit as capital gains decreased and said it expects its third-quarter net profit to rise by less than one per cent.

The private conglomerate - active in edible oil, sugar, retail and real estate - made SR207.7 million in the three months to end-June down from SR212.5 million a year earlier, it said in a statement to the Saudi stock exchange on Sunday.

It was Savola's lowest quarterly net profit since the first quarter of 2009.

Savola said third-quarter net profit is forecast to reach SR280 million up from SR277.8 million it reported for the same period in 2009.

With a near 30-per cent stake, Savola is also the biggest shareholder in Almarai Company, the Middle East's biggest dairy firm by market value.-Reuters